DRS: Small Change in State Sales Tax Collection Making a Big Difference

Small Change in State Sales Tax Collection Making a Big Difference

Hartford - Connecticut Revenue Services Commissioner Kevin Sullivan likes to describe the agency as “not your father’s tax department.” Taking the lead from Governor Malloy’s commitment that all state agencies work smarter, the Department of Revenue Services (DRS) is actively finding more ways to cut expenses, improve taxpayer services, and strengthen compliance.

Sometimes, these efforts show that even a little change can add up to a big difference.Businesses that make sales and many that provide services must have tax permits in order to operate legally in the state.In the past, DRS routinely renewed permits every five years even if a business had not paid its taxes.“No more,” said Commissioner Sullivan.“Letting those businesses slide is just not fair to all the other business taxpayers that do the right thing or to all of us as taxpayers who may have to pay more than our fair share as a result.”

Starting in July, DRS began notifying businesses owing back taxes or failing to file that sales tax permits would not be renewed until the taxes were paid – either in full or through adherence to a reasonable payment plan. In just the first three months of this ongoing initiative, 187 delinquent taxpayers have paid back taxes totaling more than $520,000, or around $175,000 each month. The positive revenue impact will continue as sales tax permit renewals roll out over time.